Legends and chinese tales tell us that the beginning of Chinese New Year started with a fight with a beast called the "Nian". (年) The Nian would come on the first day of the new year to devour livestock and even human beings and to terrorise the Chinese people.
So to scare away the beast, the Chinese people had to put food outside their doors. Legend has it that the beast was also afraid of the colour RED. So people would paste red papers outside their doors and encourage one another to wear red to scare the beast away. Firecrackers were also used to put the beast at bay.
Red packets containing money for children and unmarried people, distributed by parents and the elders!
Red paper with well wishes, for pasting on the walls, doors.
Everyone wears red!
So this is a brief explanation of the mythological origin of Chinese New Year.
So now you know why we Chinese love red when the New Year comes.
Red is for good luck, good fortune and everything good!